Credit holidays for military personnel: news in the field of lending in 2023

According to the legislation, certain benefits, guarantees and compensations are provided to military personnel. These concessions also apply to lending. Further in the article we will tell you what benefits are available to military personnel and what has changed or may change in 2023.

What kind of relief in the field of lending is now

On According to Ministry of Justice, From the beginning to the end of the special period for military personnel, and for reservists and those liable for military service - from the moment of conscription during mobilization and until the end of the special period, they have the following benefits:

  • exemption from payment of interest for the use of credit;
  • exemption from fines/penalties for late payment of loan payments to enterprises, institutions and organizations of all forms of ownership, including banks, and individuals (part fifteen of article 14 of the Law of Ukraine "On the social and legal protection of military personnel and members of their families)" ).

 

A credit holiday is a period during which the debtor can stop paying the loan without bad consequences for his credit history. Typically, this period can last from three to six months and applies to all loan products - both cash loans and credit card online.

 

Professional military and contract soldiers do not accrue interest on loans from March 18, 2014 and today. Credit holidays can be used by all borrowers with the status of a military man.

 

For clients mobilized into the ranks of the Ukrainian army, the National Guard or regional protection battalions, credit holidays are valid for the period of mobilization and military service.

 

In 2020 to The law “On the social and legal protection of military personnel and members of their families” some amendments have been applied that regulate certain restrictions:

  • the effect of indulgences does not apply to family members of servicemen, persons liable for military service and reservists who died during military service (meeting), while serving in the reserve as a result of the commission of a criminal or administrative offense by them, or if the death (death) of a serviceman, person liable for military service or reservist occurred as a result of committing they act in a state of alcoholic, narcotic or toxic intoxication, is the result of deliberate infliction of bodily harm on themselves by military personnel, persons liable for military service or reservists;
  • this law does not apply to foreigners and stateless persons serving in the Armed Forces of Ukraine.

 

According to preliminary data, no new changes to the legislation are envisaged in 2023. However, we recommend that you clarify the information with the credit institution to which you plan to apply for a loan: each financial institution can provide certain benefits on an individual basis.

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